Gold Price Analysis: Consolidating in a pennant pattern

• Gold is trapped in a pennant pattern on the hourly chart. 
• A breakout would allow a re-test of recent highs above $1,600.

Gold has largely been in a consolidation mode since Monday's early Asian session and is currently sidelined near $1,580.

The hourly chart shows the yellow metal is trapped in a pennant pattern. A bullish breakout would imply a continuation of the rally from the Jan. 24 low of $1,556 and would open the doors to re-test of the 2019 high of $1,611.

On the other hand, the pennant breakdown would allow a drop to the hourly chart support at $1,567. 

A pennant breakout looks likely, as the daily chart is reporting bullish conditions. 

Hourly chart

Trend: Neutral-to-bullish

Technical levels